How Companies like ShopX can Leverage the Unorganised Retail Sector to take E-commerce beyond Urban India?

Unorganised retail has a humongous opportunity, which is largely untapped.


The unorganised retail in India is touted to be the most popular purchase destination, catering to thecountry’s  1.3 billion population.As per an industry report, the market size of unorganised retail was a whopping $697.71 billion in 2018, whearas the size of organised retail stood at $ 79.43 billion. Undoubtedly, unorganised retail has a humongous opportunity, which is largely untapped.


However, recent evolutions in the e-commerce sector has started changing the landscape of unorganised retail; still, the benefits of e-retail are largely confined to the metros or tier 1 cities. Pincodeslocated at far flung areas are either untouched by any leading e-commerce company or they take several days to reach there.


As per an industry report, the growth ratio of e-commerce into India's non-metro cities is expected to accelerate in 2019 and continue over the next few years. Moreover, the contribution of ecommerce to the overall retail market is less than 4 percent, and this share is expected to increase by 12 percent by 2026.


As the result of this humongous growth, the market is seeing B2B segment almost doubling in size vis-à-vis the B2C ecommerce market.


Therefore, companies such as Shopx, Sanpdealamongst others are endeavouring to help these (unorganised) sellers with an opportunity to grow their business online.


UnorganisedSellers Leveraging from E-commerce Boom


High inventory cost, poor logistics and weak customer interests are few of the factors that pose big challenge for sellers. Hence a new breed of social commerce and ecommence firms has started to pop-up, primarily aiming to find the digital solutions in pursuit of accessing local towns and cities.  


ShopX marketplace is a pioneered concept to help the sellers by providing robust future ready solutions, which are available across 23 states in India, consequently hosting over one lakh retailers across the network.


The company has the vision to empowerunorganised retailers in the country, which comprises 12 million kirana stores, FMCG and small telecom stores.


How it actually Works

The company follows an invite-only approach for adding retailers. This allows for more targeted and geographically clustered addition of retailers. The company has dedicated members from its sales’ teams in every state who physically visit retail stores to explain the benefits of the platform that the company has created. This process ensures seamless on-boarding of retailers and gives them a personalised experience. 


The company reaches out to retailers who are not being well serviced by brands or distributors. These retailers do not have access to a wide range of products available in the market as well as a formal credit system. As a result of small purchase quantities, retailers are devoid of a lot of benefits from distributors, which then results in them settling for lower margins. By on-boarding them on the ShopX platform, the company ensures accessibility, affordability and additional benefits for the retailers.  


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